Meanwhile, Uganda saw a drop in foreign currency loan uptake, attributed to fluctuating exchange rates and higher banking costs. Despite overall private sector credit increasing by 9.8% in Q1 2023, foreign currency lending fell from 2.4% in the previous quarter to 0.1% in early 2023. On the other hand, loans in Ugandan shillings grew by 12.1%, even as prime lending rates rose to 20.5%.